Throughout the development of DeFi lending protocols, the best way to manage protocol funds for sustainable growth and risk coverage has been a major open question. As a customizable optimization platform, Aera offers a compelling solution for the treasury management needs of DAOs. Primarily, lending protocols need to provide coverage for insolvencies (loan losses) that may be realized in market shocks. 

On October 19, 2022, Aera hosted a live Q\&A event to introduce the new protocol. This post is an abridged transcript of questions from that event, answered by Tarun Chitra and Shaan Varia of Gauntlet with Peteris Erins from Auditless.

Aera was created as a platform for efficient risk management and hedging with a wide range of applications. Though the initial version of the protocol is most applicable to lending treasury management, there are prospective use cases in many areas involving complex trade-offs. This article explains how to use Aera and why protocols like Aera are an important next step in developing financial applications on blockchains.

The world’s first autonomous treasury management protocol.